Premium for MM direct lending loan yields over large corporate credits averaged 265bp in 2Q24

LSEG|July 23, 2024

Content hub / Article / LSEG / Premium for MM direct lending loan yields over large corporate credits averaged 265bp in 2Q24

Pricing tightened across all market segments in 2Q23 as demand for assets outpaced supply. This enabled borrowers to obtain more attractive pricing on new credits and refinance existing debt. The average yield on first-lien middle market term loans for direct lender-led deals tightened by 31bp to 11.43% in 2Q24, while middle market syndicated credits declined by 43bp to 9.98%. Large corporate syndicated term loan yields tightened by 29bp to 8.78% on average. In turn, the yield premium for direct lender-led deals over large corporate deals was relatively flat at 265bp in the most recent quarter.

Contact CJ Doherty

Podcast

Business development companies and the rise of balance sheet financing vehicles

Fitch's Deb Murnin and Chelsea Richardson discuss the growing use of off-balance-sheet JVs and finance companies among BDCs, exploring the drivers, leverage impacts, portfolio risk profiles, and potential rating implications for Fitch-rated BDCs.

Listen

September 15-16, Hudson Yards, New York

Private Debt Investor New York Forum

Bringing together the investors, managers and advisers shaping the next phase of the market — 200+ allocators and $10.6 trillion of LP capital expected. Benchmark strategies, hear from leading LPs, and cut through market noise over two unmissable days.

Learn more

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.

Download

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.

Download

Webinar

Making sense of private credit defaults

What does private credit default data really tell us? Join our exclusive webinar featuring experts from KBRA, Moody's, Fitch Ratings, and S&P Global to find out.

Latest news

See all stories

Article | Bloomberg

Rate hike expectations ease as term SOFR curve flattens

August 20, 2026

The CME six-month Term SOFR rate reached a recent high of 3.979% on July 28 before retreating to 3.837% as…

Article | LSEG

3Q26: New loan assets rise to 44% of total lending, a 3-year high

August 19, 2026

New loan assets as a proportion of total US loan volume make up 44% of the 3Q26 pipeline to date,…

Article | PEI Private Credit

North American GPs dominant as fundraising accelerates